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ByteDance (BDNCE)-owned TikTok intends to launch its in-app shopping platform in Spain and Ireland as early as October, Bloomberg News reported.
The move is aimed at resuming its stalled efforts to expand in Europe. The company informed partners including merchants and creator agencies in recent weeks to be ready for a TikTok Shop launch in the two European countries, the report added, citing people with knowledge of the matter.
The launch will be smaller than previously anticipated. However, preparations are going on to bring the platform to other countries in Europe next year, according to the report.
The company intends to continue experimenting with this new commerce opportunity to support businesses and enable their community to engage with products, the report added, citing a TikTok spokesperson.
TikTok Shop has hired about 40 staff in Spain, making it one of the company’s largest e-commerce unit in Europe. The company is also recruiting Spanish speakers in Madrid and London for roles including, logistics, compliance and strategies for Shop.
The plan for a smaller launch in Europe could suggest that the company intends to widen its reach without attracting additional scrutiny from EU agencies.
Last week, the EU’s General Court dismissed an action brought by ByteDance (BDNCE) against the European Commission’s decision of designating the TikTok parent as a gatekeeper. In September 2023, the European Commission designated for the first time six gatekeepers, which included Chinese tech giant ByteDance, under the Digital Markets Act, or DMA — a legislation that establishes a set of objective criteria to qualify a large online platform as a “gatekeeper” and ensure that they behave fairly online and leave room for contestability.
TikTok Shop would potentially compete against rivals such as Shein and PDD’s (PDD) Temu.
In May, it was reported that TikTok halted its plans to roll out its e-commerce business across several markets in Europe, and instead aimed to focus on growth in the U.S.
The U.S. remains TikTok’s most vital market, with 170 million users monthly. The company aims to grow U.S. merchandise volume 10 times to about $17.5B this year.
However, TikTok is in a legal tussle with the U.S. government. In April, U.S. President Joe Biden signed a bill into law which would force a U.S. ban on TikTok unless its Chinese parent ByteDance divests itself of the app within about a year. In response, TikTok and ByteDance have sued the U.S. government.